When the government enacts policies that lead to lower mortgage lending standards and lower interest rates,their actions can indirectly lead to higher home prices.

Question

Quizplus · Accepted Answer

When mortgage lending standards are lowered and interest rates are decreased, it often increases demand for homes as more people can afford to buy them. This increase in demand for homes can drive up prices due to the limited supply available. Therefore, the government's policies can indirectly lead to higher home prices.

When the Government Enacts Policies That Lead to Lower Mortgage